Correlation Between Clean Energy and Penta Ocean
Can any of the company-specific risk be diversified away by investing in both Clean Energy and Penta Ocean at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Clean Energy and Penta Ocean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Energy Fuels and Penta Ocean Construction Co, you can compare the effects of market volatilities on Clean Energy and Penta Ocean and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Clean Energy with a short position of Penta Ocean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and Penta Ocean.
Diversification Opportunities for Clean Energy and Penta Ocean
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Clean and Penta is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels and Penta Ocean Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penta Ocean Construc and Clean Energy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Clean Energy Fuels are associated (or correlated) with Penta Ocean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penta Ocean Construc has no effect on the direction of Clean Energy i.e., Clean Energy and Penta Ocean go up and down completely randomly.
Pair Corralation between Clean Energy and Penta Ocean
Assuming the 90 days horizon Clean Energy Fuels is expected to generate 2.14 times more return on investment than Penta Ocean. However, Clean Energy is 2.14 times more volatile than Penta Ocean Construction Co. It trades about 0.15 of its potential returns per unit of risk. Penta Ocean Construction Co is currently generating about 0.09 per unit of risk. If you would invest 123.00 in Clean Energy Fuels on April 21, 2025 and sell it today you would earn a total of 53.00 from holding Clean Energy Fuels or generate 43.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Clean Energy Fuels vs. Penta Ocean Construction Co
Performance |
Timeline |
Clean Energy Fuels |
Penta Ocean Construc |
Clean Energy and Penta Ocean Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Clean Energy and Penta Ocean
The main advantage of trading using opposite Clean Energy and Penta Ocean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy position performs unexpectedly, Penta Ocean can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Penta Ocean will offset losses from the drop in Penta Ocean's long position.Clean Energy vs. Compagnie Plastic Omnium | Clean Energy vs. SANOK RUBBER ZY | Clean Energy vs. BANKINTER ADR 2007 | Clean Energy vs. Ameriprise Financial |
Penta Ocean vs. Cogent Communications Holdings | Penta Ocean vs. Ribbon Communications | Penta Ocean vs. SmarTone Telecommunications Holdings | Penta Ocean vs. Zoom Video Communications |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |